On February 1st, 2023, Oracle Energy and Emirates Global Aluminium (EGA) signed a Memorandum of Understanding, pledging to collaborate and examine the feasibility of Oracle Energy providing approximately 50,000 tonnes of Green Hydrogen to EGA annually. This would make up the majority of the total output from Oracle Energy's planned Green Hydrogen Project in Pakistan.
If negotiations proceed smoothly, it is intended that a binding agreement will be signed at the 2023 UN Climate Change Conference (COP28) to be held in the UAE from November 30th to December 12th 2023. The objective of Oracle Energy is to produce a total of 55,000 tonnes of high-purity Green Hydrogen each year, which is equivalent to producing 150,000 kg of hydrogen daily.
The MoU is valid for one year from January 30th, 2023, and both parties have agreed to work towards the acquisition of Green Hydrogen ahead of COP28. EGA's aim is to incorporate Green Hydrogen and green ammonia into its operations as part of its commitment to reducing carbon emissions. Replacing natural gas with Green Hydrogen not only decarbonizes the aluminum production process but also enhances the energy efficiency of aluminum furnaces that use oxy-fuel combustion technologies.
Emirates Global Aluminium, based in the UAE, is co-owned by the sovereign investor, Investment Corporation of Dubai, and the state-owned holding company, Mubadala Investment Company. Both companies manage a vast portfolio of assets and investments in the UAE and abroad to deliver sustainable financial returns for their shareholders.
"The MoU with EGA, a sovereign-owned giant in the aluminum sector, represents a major stride towards reducing financing risk for our Green Hydrogen project and securing a place for it in the global Green Hydrogen supply as heavy industries move towards decarbonization," said Naheed Memon, CEO of Oracle Power. "Interest from this global player highlights the significant progress we have made on the development of our flagship Green Hydrogen Project, which has the potential to become one of the largest Green Hydrogen projects in the region. This collaboration is critical as we search for sustainable off-take partners for our Green Hydrogen production. The global opportunities for Green Hydrogen production are immense, and as an early adopter in Pakistan, we are eager to reap the benefits following the successful deployment of our flagship project and contribute to local and regional decarbonization efforts.
Green hydrogen is produced through the process of electrolysis, where an electric current is passed through water to separate the hydrogen and oxygen molecules. In this process, the source of electricity must be renewable, such as wind, solar, or hydro power, in order to produce truly "green" hydrogen. This process produces hydrogen with zero carbon emissions, unlike traditional hydrogen production methods which rely on fossil fuels and emit significant amounts of greenhouse gases.
Source : Oracle Power Plc
#Green Hydrogen #Oracleenergy #Emiratesglobalalluminium
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